Backdating of

This is usually introduced by wording such as: to type this date in the agreement prior to signature, but rather to write the date in by hand once all parties have signed.More often than not, in our experience, when parties type the date in ahead of signature, one or both parties fails to sign on the typed date.In comparison, had the options been granted at the year-end price when the decision to grant to options actually might have been made, the year-end intrinsic value would have been zero.Backdating does not violate shareholder-approved option plans.In 1972, a new revision (APB 25) in accounting rules resulted in the ability of any company to avoid having to report executive incomes as an expense to their shareholders if the income resulted from an issuance of “at the money” stock options.